Land & islands to be given to those who spend on Giraavaru lagoon dredging project

President Ibrahim Mohamed Solih and Economic Minister Fayyaz Ismail. | Photo: President’s Office

Malé, Maldives – President Ibrahim Mohamed Solih has decided to give land, islands or lagoons under the cross-subsidy system to those who finance the development a residential city in K. Giraavaru lagoon.

President Solih amended a resolution issued in 2021 yesterday to include regional airports and Giraavaru lagoon dredging and development projects in the list of cross-subsidy projects.

Following the amendment of the presidential resolution, Economic Ministry has announced for interested parties to submit expressions of interest or proposals for financing the development a residential city in K. Giraavaru lagoon.

According to the ministry, the proposed financing will be set off against the acquisition cost, and any proceeds from committed financing exceeding the acquisition cost shall be set off against the lease rent as per regulation.

This process will be a continuing process and will remain open until its closure is publicly notified, Economic Ministry announced.

According to the presidential resolution, the financier will have to spend USD 5 million (MVR 77 million) on the Giraavaru dredging project under the cross-subsidy rule.

Those who spend on regional airports will have to spend at least USD 3 million (MVR 46.2 million).

Land and islands are given to those who spend on government projects under the Tourism Act. The article states that those who spend on projects can be given a island, land or lagoon as a cross-subsidy.

Current administration has previously announced that Giraavaru lagoon will be reclaimed and 2,000 plots of land will be provided to permanent Malé residents from the reclaimed land. Giraavaru lagoon will be connected to Greater Male area via Thilamalé bridge.